Q: What part should multi-manager play in a portfolio?

Caspar Rock, chief investment officer of Architas, said multi-manager can provide a welcome core holding for an investment portfolio.

He said some advisers use either passive or active multi-manager funds as a core to the portfolio while buying complementary satellite positions to build a bespoke solution for their clients.

For smaller investors, Gary Collins, head of UK retail sales at Threadneedle, said multi-manager funds can provide a full investment solution.

For larger investors, Mr Collins said a core multi-manager portfolio could give access to a range of asset classes, allowing advisers to focus on specific tactical investments which are run alongside.

Tom Caddick, head of fund management for global multi-manager at Santander Asset Management UK, said the simple fact was not one management house excelled in all strategies, asset classes and market conditions.

He said: “Certain clients will have particularly complex requirements requiring a highly bespoke approach but this does not preclude multi-manager from forming the basis of an investment portfolio.

“Increasingly also a multi-manager approach is being sought for institutional clients as well as retail.”